The most effective way to achieve financial freedom is not through labor or entrepreneurship, but by investing in oneself.
Financial freedom means being able to maintain your standard of living without working. In Buffett's words, it is 'your assets increasing while you sleep.'
From this perspective, the easiest way to achieve financial freedom is certainly through investment rather than a nine-to-five job or personal entrepreneurship; it is investment — this holds true in prosperous times and even more so in times of recession. The starting point for all investments begins in the mind.
‘Investing in yourself’ is a saying from investment master Warren Buffett to all investors. Because it has been widely spread and repeated too often, it has become a boring 'self-help mantra.' However, when the tide of time slowly recedes, one will find that 'investing in yourself' is indeed the best investment. The key is: it must be a real investment in oneself, not self-deception.
The best way to invest in oneself is to read more, read good books, and enhance one's understanding, rather than just 'spending money on oneself.' All experiences and lessons that can be learned through study do not need to be personally experienced. A person does not need to buy unfamiliar stocks only to find out the hard way that some stocks in this world are simply not profitable. This is the meaning of learning.
The first step to learning about investing is not to study specific stock knowledge and complex mathematical functions but to understand how investment masters achieved success, standing on the shoulders of giants to see further than others. Such 'giants' include global investment pioneers like Sir John Templeton, tireless explorer Peter Lynch, and unparalleled investment master Warren Buffett. Studying their investment philosophies is a 'mandatory course' for every investor.
Sometimes, the few words of these investment masters can awaken investors blinded by beautiful dreams, providing a sudden insight like a bolt from the blue. Their philosophies have even transcended the realm of investing, becoming a universal wisdom for life.
John Templeton said, 'If you want to be a winner in today's fast-paced world, you must learn from the wise and steady turtle, which fully embodies that perseverance and self-control are the rules for success.' This metaphor is bold and accurate, sounding more like words from ancient Eastern sages than those of a Western investor.
For example, in 'The Excellent Investment,' Warren Buffett says, 'For 240 years, to be bearish on America's development has been a terrible mistake, and there is no need to be bearish now. The golden goose of American business and innovation will continue to lay bigger and bigger golden eggs.' Buffett's words are simple and direct. He once said that buying stocks is buying companies, but this statement points to an even more important aspect: to view the country as a company. When you examine a country with the standards used to assess a company's performance, the answer to whether to invest in that country's stocks becomes obvious.
If you could only read one book on investing, 'The Excellent Investment' would be an excellent choice. This book combines the insights of three legendary investment masters: John Templeton, Peter Lynch, and Warren Buffett. Their personal backgrounds, investment methods, philosophical ideas, investment cases, and timeless wisdom are turned into interesting stories by the author, making them easy to understand and worth reading for every investor.